The individual financial statements for Gibson Company and Keller Company for the year ending December

$31,2021,$ follow. Gibson acquired a $60$ percent interest in Keller on January $1,2020,$ in exchange for various

considerations totaling $$600,000.$ At the acquisition date, the fair value of the noncontrolling interest was

$$400,000$ and Keller's book value was $$800,000.$ Keller had developed internally a customer list that was not

recorded on its books but had an acquisition$-$date fair value of $$200,000.$ This intangible asset is being

amortized over $20$ years. Gibson uses the partial equity method to account for its investment in Keller.

Gibson sold Keller land with a book value of $$50,000$ on January $2,2020,$ for $$110,000.$ Keller still holds this

land at the end of the current year.

Keller regularly transfers inventory to Gibson. In $2020,$ it shipped inventory costing $$175,000$ to Gibson at a

price of $$250,000.$ During $2021,$ intra$-$entity shipments totaled $$300,000,$ although the original cost to Keller

was only $$195,000.$ In each of these years, $20$ percent of the merchandise was not resold to outside parties

until the period following the transfer. Gibson owes Keller $$55,000$ at the end of $2021.$

$($Note: Parentheses indicate a credit balance.$)$

a$.$ Prepare a worksheet to consolidate the separate $2021$ financial statements for Gibson and Keller.

b$.$ How would the consolidation entries in requirement $($a$)$ have differed if Gibson had sold a building on

January $2,2020,$ with a $$110,000$ book value $($cost of $$240,000)$ to Keller for $$200,000$ instead of land, as

the problem reports? Assume that the building had a $10-$year remaining life at the date of transfer.